Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Components of Pretax Loss from Operations

The components of the pretax loss from operations for the years ended December 31, 2013, 2012 and 2011 are as follows (in thousands):



	Year Ended December 31,
	2013			2012			2011
U.S. Domestic	$	(9,264	)	$	(3,310	)	$	(14,400	)
Foreign	(69,784		)	(13,308		)	(12,288		)
Pretax loss from operations	$	(79,048	)	$	(16,618	)	$	(26,688	)

Components of (Benefit) Provision for Income Taxes

The components of the (benefit) provision for income taxes are presented in the following table (in thousands):



	Year Ended December 31,
	2013			2012			2011
Current:
Federal	$	(21	)	$	107		$	4
State	186			24			222
Foreign	2,525			2,083			(388		)
Total current provision (benefit)	2,690			2,214			(162		)
Deferred:
Federal	229			137			163
State	15			29			8
Foreign	245			(3,539		)	(4,516		)
Total deferred provision (benefit)	489			(3,373		)	(4,345		)
Total provision (benefit)	$	3,179		$	(1,159	)	$	(4,507	)

Schedule of Effective Income Tax Rate Reconciliation

The (benefit) provision for income taxes differs from the amount of income tax determined by applying the applicable U.S. statutory federal income tax rate to pretax income as a result of the following differences:



	December 31,
	2013		2012		2011
Federal statutory rate	(35.0	)%	(35.0	)%	(35.0	)%
Adjustments for tax effects of:
State taxes, net	(0.1	)%	(0.0	)%	(0.7	)%
Stock-based compensation	0.5	%	(0.5	)%	1.8	%
Foreign taxes	1.1	%	(0.1	)%	3.6	%
Tax credits	(0.4	)%	(0.7	)%	(1.2	)%
Deemed foreign dividend	—	%	0.2	%	10.3	%
Intercompany debt forgiveness and other permanent adjustments	9.5	%	5.0	%	0.8	%
Tax rate adjustment	0.2	%	0.7	%	(0.5	)%
Uncertain tax positions	2.7	%	14.9	%	(1.5	)%
Other	(0.4	)%	3.3	%	(3.1	)%
Valuation allowance	25.9	%	5.2	%	8.7	%
	4.0	%	(7.0	)%	(16.8	)%

Significant Components of Company's Deferred Tax Assets and Liabilities

Significant components of the Company’s deferred tax assets and liabilities as of December 31, 2013 and 2012 are as follows (in thousands):



	December 31,
	2013			2012
Deferred tax assets:
Allowances and reserves	$	816		$	1,088
Accrued expenses	3,685			648
Inventory reserves	7,549			7,839
Net operating loss carryforwards	26,497			28,786
Property and equipment	1,171			—
Stock-based compensation	2,769			1,866
Legal settlement	17,998			4,156
Income tax credit carryforwards	1,800			1,276
	62,285			45,659
Valuation allowance	(56,690		)	(36,031		)
Total deferred tax assets, net of valuation allowance	5,595			9,628
Deferred tax liabilities:
Property and equipment	—			926
Intangible assets	4,806			6,910
Goodwill	1,256			1,011
Total deferred tax liabilities	6,062			8,847
Net deferred tax assets (liabilities)	$	(467	)	$	781

Summary of Changes to Unrecognized Tax Benefits

The following table summarizes the changes to unrecognized tax benefits for the years ended December 31, 2013, 2012 and 2011 (in thousands):




Balance at December 31, 2010	$	4,421
Additions based on tax positions related to the prior year	73
Additions based on tax positions related to the current year	399
Reductions as a result of positions taken	(59		)
Reductions as a result of lapse of applicable statute of limitations	(649		)
Additions as a result of foreign exchange rates and other	12

Balance at December 31, 2011	$	4,197
Additions based on tax positions related to the prior year	987
Additions based on tax positions related to the current year	743
Reductions as a result of lapse of applicable statute of limitations	(58		)
Additions as a result of foreign exchange rates and other	28

Balance at December 31, 2012	$	5,897
Additions based on tax positions related to the prior year	221
Additions based on tax positions related to the current year	1,664
Reductions as a result of lapse of applicable statute of limitations	(20		)
Additions as a result of foreign exchange rates and other	73

Balance at December 31, 2013	$	7,835